Lufax vice president Yunny Lee shared her insights and Lufax’s best practices on breakthrough financial technologies (Fintech) and the future of finance at The Asian Banker’s Finance China 2019. Finance China is an annual conference that brings together industry leaders to meet and exchange professional insights, work on detailed solutions, and discuss the latest trends in the industry. This year’s event gathered more than 400 of the country’s financial institutions, regulators, policy makers, and service providers.
Lee identified three key pain points of the financial industry, namely the high cost, the high threshold for entry, and the low efficiency. The advent of Internet-based platforms, and lately the rise of artificial intelligence (AI), according to Lee, has helped to remove physical limitations and expand service coverage, lower the entry point, and make financial services more inclusive. “Lufax has been leading the way in the application of such technologies as AI, big data, and cloud computing,” said Lee. “At Lufax, tech and fin are like yin and yang working together in a virtuous cycle, giving rise to easier, safer, and more efficient solutions, creating value for the investor community, and injecting capital back into the greater society.”
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Lufax has always placed its customers at the center and strived to deliver an ever-improving customer experience since its foundation in 2011, said Lee. Empowered by advanced technologies, the lu.com platform now serves 43 million registered users from more than 400 cities. 53% of new investments on Lufax’s platform in the past 12 months came from China’s tier two to tier five cities. The on-boarding process now takes just five minutes. All these are making financial services easier and more inclusive every day.
On the other hand, explained Lee, the financial DNA of Lufax differentiates the company from the Internet-native platforms in its emphasis on risk management and due diligence. Lufax uses big data technologies to drive its proprietary Know Your Customer (KYC) and Know Your Product (KYP) systems, facilitating intelligent risk matching with accurate user profile and in-depth market intelligence. Recognizing blockchain’s resistance to alterations, Lufax deploys the technology across its platform to trace transactions and ensure transparency. In addition, Lufax’s AI-driven wealth management interface renders timely services and delivers a frictionless customer experience. “Customers are often faced with challenges brought on either by asymmetrical information, or their own lack of understanding toward investment and risk,” expounded Lee. “This is where AI can come in and help identify the optimal match, thus democratizing professional and individualized services.” Lufax’s KYC and KYP systems, using AI, big data, and cloud computing, have changed the paradigm of investment and wealth management from one oriented toward sales targets to one oriented toward customer needs. “While our systems have achieved more than three trillion successful matches to day, they have also rejected more than 2.42 million transactions, that are worth 3.85 trillion, for risk mismatch,” shared Lee. “We strive to empower our investors to make informed decisions, and help deliver a positive and gratifying experience. Happy customers are often loyal customers.”
Technologies also add value in making finance more efficient, added Lee. Lufax’s one-stop, completely online platform helps to reduce repetitive labor and improve efficiency, processing trillions worth of transactions across 7,000 products each year with just 1,000 service personnel. Lufax recently introduced a Know Your Intention (KYI) module built upon Natural Language Understanding (NLU) and look-alike algorithmic modeling. “We are the first in the industry in mapping out the entire customer journey on our platform, with more than 100,000 touch points,” said Lee. “This gives us the ability to make educated predictions about customer needs, anticipate potential difficulties they may run into, and actively provide help to ensure their satisfaction.”
Lee named adaptive transformation the key in Lufax’s continued growth, and saw the next stage of transformation to be one that goes from “empowered” by technology to “enabled” by technology, “With the help of machine learning, many of our systems are now self-improving. They no longer wait around to be empowered or upgraded every now and then, for they are already self-enabling just from their normal operations.”
“The most intrinsic advantage of Fintech is its extraordinary ability to handle scale and capacity, all without compromise to customer experience,” concluded Lee. “At Lufax, a technology-enabled, self-improving future of finance is not just an attractive option, but our deepest commitment.”